I use a Nikon D70 digital SLR camera. I love it. I could go on forever about why it's that way, but don't take my word for it. Check out some of the pics they post. Incredible. I can realistically say that 10 years down the road, I won't be limited by the camera. They'll come out with something I want more in a matter of months, but after seeing some of the results that other people are getting with their D70's, I can only hope that I can become as good of a photographer. A camera can only do so much on it's own. People take the pictures, not the camera.
As for my printer, I've always been a Canon guy, ever since I actually did some comparison shots with the s900 from a few years back with the best that HP had to offer. I was converted instantly. Now I have a Canon ip5000, and I couldn't be happier. It prints the best prints I've ever seen from an inkjet that costs less than 400 bucks (I paid $160), and does it in a remarkably user friendly way. Very economical, especially on Matte Photo Paper. I've only been printing on 8.5x11. Makes a world's worth of difference seeing prints larger than 4x6.
HP's are good for some things, they're very reliable, for instance. Epsons are about the best photo printers you can buy, but you have to get above the $500 range for them to compete with the good Canon's, in my opinion. They're also a lot more finicky, and require some babying and tinkering. Epson also has a good line of document printers, the C and CX series. I've got one for printing documents and copying/scanning. Lexmarks aren't good for anything. They drink ink, and the photos are terrible, even compared to OLD Canon's, HP's, etc. Even if the printer is free, use it until it runs out of ink, and get rid of it. By the time my Epson ran out of ink the first time, I would have already dropped over 100 bucks on Lexmark cartridges. Dell's are even worse, because they're rebranded Lexmarks that don't take standard cartridges. You have to pay more, pay for shipping, and wait for them to get there. And you get all of the crappy things that go along with Lexmark.
Oh, and I have a Mac, but that's for a later post. (I have a Windows box as well.)